4 Steps to Great Truckload and LTL Rates, from Logistics Management.
Shippers keep telling me they are absolutely shocked by the rate increases their LTL carriers are proposing. Here’s an example from just last week.
A dismayed shipper called me when one of the big LTL carriers “demanded”—his words—a 25% increase. When the shipper balked and complained, the carrier basically said: “Take it or leave it.” So the shipper is now looking to replace a core carrier that handles a sizeable amount of their freight.
This isn’t an aberration. In this seller’s market we’ve warned you about, here are the facts of life: If a carrier’s operating ratio for handling your freight exceeds 100, you can expect sizeable—think double digit—rate increases from your carriers. It’s nothing personal. It’s just that your carriers think they should be making money for hauling your freight.
Having negotiated billions of dollars in freight on behalf of our customers over the years, we are experts on things shippers should be doing when they conduct their LTL and Truckload sourcing events. So, if you want some practical tips on how you can avoid drastic increases in your freight costs, here are four things to consider.